Japan Real Estate & Economy Insights –

From the Experts

Our principals and staff – all active and experienced property investors – make it their top mission priority to always stay on top of their market, in order to best serve our clients’ interests and maximize their portfolio efficiency at any given time and economic climate.

As a result, they are constantly collating, reading and producing some of the world’s best advice, commentary and inside information regarding Japan’s economy, its’ business environment and, above all, its’ property market. This page is where they share some of their insights, as well as those of other industry leaders and experts, in exclusive and fascinating in-depth articles, interviews and  videos – enjoy!

You Asked Us – What is the Difference Between “Net pre-tax Yield” and “Gross Yield”?

Japan Real Estate

Japan Properties

Yield is a key factor in real estate investing, expressing rental revenue as a proportion of a property’s purchase price. As prices rise, yield falls. But depending on the types of costs included in the calculation, yield can vary. Here are some differences to watch for:

Yield, Net Pre-Tax

For an accurate picture of the return you can expect on your investment, our preference is yield as net pre-tax, which includes all known costs and calculated before taxes. This is what we show on our deal analyzer spreadsheets which breaks down the numbers in terms of price, costs, return, etc. so that you can see how the property’s monthly cash flow is obtained. Net pre-tax yield includes all known purchase and running costs such as the realtor fee, proxy fees, property management, purchase tax, insurance, and monthly building fees. We cannot provide numbers we don’t have, of course. Therefore, we exclude annual taxes (property tax and income/corporate tax) and unknowns such as vacancies, maintenance/repairs or capital appreciation/depreciation. But, we do give you an indication of what you can expect… [read more]

You Asked Us…I’m new to Japan’s property market. Where is the best place to invest?

Japan Investment Properties

Japan Real Estate

Across Japan, other than in Tokyo, foreign investors have been turning to investments in high yield, cash flowing apartments that are surprisingly affordable. A property market of high supply and equally high demand. From USD$25,000 to $60,000 you can easily find properties with rental yield of 6% to 12% on average net pre-tax, depending on the location. “Net pre-tax” is important because it factors in all known costs. It doesn’t include taxes and unknown costs.With yield this high, it’s not surprising that offers are made on attractive, high-yielding properties almost as soon as they hit the market from local investors. Based in Fukuoka, our Japanese and English speaking team help foreign investors also get their foot in the door… [read more]

 

RETalkAsia Interview with Priti Donnelly, Sales/Marketing Manager at NTI

Japan Real EstatePriti Donnelly is the sales and marketing manager at Nippon Tradings International, a proxy and buyers’ agency representing foreign investors with purchasing, selling and managing real estate in Japan. She understands the importance of transparency in today’s international market. Through her insight, she focuses on breaking barriers and helping investors feel confident about their property investments… [read more]

 

Three Misconceptions about Japan’s Properties

Japan Investment PropertiesJapan’s attractive property market draws real estate investors worldwide for its high yield,affordability, rental income cash flow and safe haven economic environment. Japan is also one of the countries most affected by natural disasters. Therefore, foreign investors, new to the market ask, “What is the risk associated with the age of Japan’s real estate?” To answer this question, we explore the common misconceptions of Japanese properties… [read more]

 

Japan Real Estate Investment PropertyJapan Property Investment Market: 2016 Summary, 2017 Forecast

As 2016 draws to an end, it is now time to re-visit last year’s forecasts, compare them with current trends and numbers, as published by regional industry leaders, and attempt to hazard a guess as to what the coming year will bring to Japan’s real estate investment arena…. [read more]

 

Japan Real Estate Property InvestmentJapan Real Estate Investment: Where to Buy?

While big players have pegged the last four years of property price hikes as a reliable trend – it would seem prudent to focus on stable, reliable monthly cash-flow as our prime criteria, and consider any potential capital appreciation to be a bonus, or icing on the portfolio cake, rather than banking on it to any significant degree… [read more]

Japan RE Purchase & Management: Investment Life-cycleJapan Real Estate

Properties in the Japanese real estate market are sold within days, sometimes hours, making it more difficult to compete against local buyers. So, how then do foreign buyers successfully manage to invest in the market?… [read more]

 

After the Purchase: Portfolio ManagementJapan Property Investment

Assuming you’ve purchased your first property and, hopefully, plan to expand your portfolio further as the opportunity arises, you’ll need several infrastructure components in place to allow you to successfully and efficiently manage it in Japan… [read more]

 

Japan Real EstateJapan’s Home-Sharing Future & Foreign Investors

In late January, Tokyo’s Ota ward won an exemption from the country’s hotel law and became the first municipality in Japan to tackle the chronic hotel shortage. In the ward, residents could legally rent out space to tourists, a business known as “Minpaku” in Japanese, under certain requirements…. [read more]

 

International Real EstateQ&A – Selling before the 2020 Tokyo Olympics

Capital gains tax in Japan is doubled if properties are sold within five years after purchase, so from a pure financial perspective, and taking into account projected sales costs (normally 3-6%, unless you’re lucky enough to have a direct buyer lined up), you need to make sure it’s worth your while… [read more]

Japan Investment PropertyJapan Real Estate Investments: Finalizing the Deal

The time has now come to finalize the deal and start earning your rental income (and, who knows, potentially some capital growth profits as well). Here’s what happens next… [read more]

 

Japan Investment PropertiesQ&A – Is Japan in Recession?

It could be claimed that Japan has been in consecutive recessions for the vast majority of the last 25 years – since its economic bubble burst in the early 1990’s. And, while it has enjoyed a period of GDP expansion in the last few years, its shrinking population all but dictates that technical recession will hit again and again… [read more]

 

Japan Investment PropertyNegotiations & Due Diligence: The Japanese Way

since, as mentioned previously, pulling an offer back with no apparent reason will burn your relationship with that particular realtor, it is essential that you do not submit more offers than you can practically proceed with, should due diligence turn out to be satisfactory… [read more]

 

Japan Overseas PropertyTop 5 Reasons RE Investors Choose Japan

Unlike many countries, there are currently no laws or regulations in Japan prohibiting the purchase of real estate by foreigners. This allows 100% ownership of deeded, freehold property registered to a foreign address and also provides an exemption from some municipal taxes for non-residents… [read more]

 

Japan Property InvestmentJapan Property Investment – 2015 Summary & 2016 Predictions

Key points from property investment industry leaders such as Price Waterhouse Coopers, CBRE, plus a summary from our own executive directors here at NTI – get up to date 2015 and 2016 info from the experts… [read more]

Japan Investment PropertyDeal Analysis – Fukuoka Studio Unit

The 42-unit building listed here was built in 1987 – after the latest earthquake resistant building standards were updated (1981), and is well-maintained, as the extremely low vacancy rate (under 5%) indicates. In December 2006, the exterior walls were restrengthened and repaired. The roof was re-water-proofed. In October 2013, a new intercom system was installed… [read more]

 

 

Foreign Interest in Japan RE at Record LevelsNippon Tradings International - Priti Donnely - Sales and Marketing Manager

Priti Donnelly, our Sales & Marketing Manager, reviews the current red-hot status of foreign investment and general interest in Japanese real-estate investment property, as evident in some staggering numbers, statistics and repeated mentions in major international media channels. [read more]

 

 

Japan Investment PropertiesQ&A – Protection from Natural Disasters

Japan was the hottest property market in Asia last year and in all likelihood this year. From the standpoint of the nation being susceptible to natural disasters such as earthquakes, tsunamis and volcanoes – area all buildings in Japan earthquake-resistant and are all buildings covered by natural disaster insurance? [read more]

 

Japan Investment PropertiesJapanese Property Investment: The Art of Relationship Building

The first step of your market research, and the most important building block of your future investment portfolio in the land of the rising sun, begins with what the Japanese value above all else – relationship building. There is a huge gap between locating these coveted deals, and actually getting someone to sell them to you. [read more]

Investing in Japanese Real-Estate for Foreigners: Part 1

Japan - reliable, regulated, but culturally isolated.Japan offers some of the developed world’s most spectacular and reliable rental cash-flow, in a safe, regulated and fully documented business environment. The caveat, however, is that it is also highly ethnocentric, culturally isolated and foreigner shy. In this article we begin to chart the best practices, approach and preparation required for would-be foreign investors in Asia-Pacific’s biggest RE property investment market. [read more]

Q&A – Japan’s Debt & Demographic Issues

Japan Properties

Japan is home to the world’s fastest ageing population, as well as holder of the world’s largest domestic debt to GDP ratio. Our Asia-Pacific manager, Mr Ziv Nakajima-Magen, tackles these issues and explains why the country remains an immensely popular investment destination in this information-packed Q&A session. [read more]

 

 

The Sun Rises – AgainJapan Investment Properties

Japan’s property investment market, which is Asia-Pacific’s biggest and most active, is currently enjoying unprecedented international attention. In this introductory article we explore the reasons behind this global phenomenon, the advantages, dis-advantages, unique features and challenges that this exciting market offers for foreign investors. [read more]

 

 

Japan – The Giant Awakens

Japan PropertiesOur Asia-Pacific executive manager, Mr Ziv Nakajima-Magen, provides an in-depth analysis and commentary on a series of articles by leading US/Japan economist and analyst Marc Weirsum, who believes Japan’s business conditions are the best they’ve been in over a decade. A fascinating study of market sentiment, macro and micro economic factors, and the apparent effects of prime minister Shinzo Abe’s unprecedented “Three Arrows” policy, also dubbed “Abenomics”. [read more]

 

 

From Investment Banking to Impact Investing

Japan PropertyThis exclusive interview with Mr Roland Thompson, Credit Suisse’s retiring director of North Asia, provides great insight into a senior investment banker’s view of global economy, Asian and Japanese markets in the post GFC era – as well as a peek into a unique individual’s personal and riveting life journey, spanning several continents, hugely differing cultures, and a paradigm shift that may surprise you. [read more]

 

 

Japan Real Estate - Video WebinarVideo Webinar – Investing out of Tokyo

Adam German, of “Real Estate Japan” interviews our Asia-Pacific manager, Ziv Nakajima-Magen, on investment strategies, financial data and the results achievable in some of the country’s less known metropolitan centres. Whether you’re a first time investor considering entering Japan’s exciting property market for the very first time, or a seasoned veteran wondering where the “next big thing” is and why – you’re bound to find this hour-long webinar/interview jam packed full of invaluable data for your own portfolio. [watch video]

 

 

Japan PropertyJapan Consumes, Produces, Profits – and “Feels” Better

A collation of and commentary on major 2013 news headlines, statistics and figures illustrating the impressive first results of prime minister Shinzo Abe’s “Three Arrows” policy, aimed at re-igniting Japan’s economic growth – a policy which has now shown spectacular results – it all started here! [read more]